James Clark McReynolds

“ These difficulties can not be avoided by saying the lessee will not pay assessments against the lessor and therefore can not complain. Leases are commonly made with reference to taxation. When the lessor discharges the tax the lessee pays rent accordingly. And the Fourteenth Anendment protects those within the same class assainst unequal taxation; all are entitled to like treatment.
Here respondents have surrendered out of gross receipts the equivalent of the burden imposed upon other property not less valuable than all the operating property in their systems ”

“ A telephone company which leased everything it used would release no property from taxation by paying the gross receipts tax, while the competitor with equal receipts, by paying the same amount, might absolve from local assessment property of very large value. ”

“ Said tax shall be equal to the percentages hereinafter fixed upon the gross receipts from operation of such companies, and each thereof within this state. * * *
'The percentages above mentioned shall be as follows: * * * on all telegraph and telephone companies, three and one-half per cent. (by later legislative action increased to 5 1/2%) . Such taxes shall be in lieu of all other taxes and licenses, state, county and municipal, upon the property above enumerated of such companies except as otherwise in this section provided. ”